There’s nothing like a market holiday rumor to get the tech world buzzing, and keep Wall Street sidelined. The San Francisco Chronicle is reporting that Adrian Perica, head of acquisitions at Apple, had a meeting with Elon Musk last Spring. It is thought that Tim Cook attended the meeting as well. So, could Apple be looking at buying Tesla?
It would definitely make waves in the tech world. Apple has stagnated, while Android devices continue to snatch market share. While the company has plans to introduce new products such as the iWatch, the natives are getting restless. It is like old adage in politics, if you are explaining, you are losing.
With this rumored meeting taking place last Spring, it could be that Musk said thanks, but no thanks. Or, someone at Apple glanced at the financials, and said wait a minute. They sell how many cars? Maybe Apple wants to continue to spread its expertise of having to plug devices in frequently. They do have that on lock.
Right now, Tesla has a market cap of around $25 billion. It is hard to see Apple shelling out what would have to be a premium over that for the company. It lacks the current infrastructure nationwide in charging stations, and the price point doesn’t exactly scream volume. This could be a move to integrate Apple products within the next generation of Tesla vehicles.
Tim Cook has said in the past that Apple is willing to spend big if it made sense for Apple strategically. Now comes the question, where Apple heads from here? Does it continue to refine its core product line? That will not make investors happy. That’s already been proven with the stock retreating away from $700 to $500. Should it disrupt the wearables with the iWatch and possibly their own version of glasses? That looks like a given on the iWatch front.
Where is the oft-rumored Apple TV. Not the set-top box, but an actual television. Does Apple wait for a better economic climate in which to launch that? If economic conditions predicate higher price points, then toss out a Tesla acquisition in the near-term. Economic data is suspect at best on the recovery.
Then again, maybe it is time for the return of ‘and one more thing’. The company needs new innovation, or at the very least something big.
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